OMRON's First-Quarter Net Sales Climb 3.1%, to Record ¥209.8 Billion,
Driven by Growth in Core Industrial Automation Business and Healthcare
Business

July 26, 2018 03:00 AM Eastern Daylight Time

KYOTO, Japan--(BUSINESS WIRE)--OMRON Corporation today announced its consolidated operating results for
the first quarter of fiscal 2018, ending June 30, 2018.

Net sales increased 3.1%, to ¥209.8 billion, while gross profit rose
4.3%, to ¥87.7 billion; both new record highs for OMRON. These results
boosted the gross profit margin by 0.5 percentage point, to 41.8%, also
a record for a fiscal first quarter. Operating income declined 13.6%, to
¥19.6 billion, while net income attributable to shareholders contracted
5.4%, to ¥14.7 billion. Operating and net income fell as a result of an
acceleration in forward-looking investments mainly in the Industrial
Automation Business. However, OMRON maintains its full year forecast for
income gains by fiscal year-end.

Sales in OMRON’s core Industrial Automation Business continued to
expand, rising 7.3%, to ¥102.8 billion. This reflected the steady
progress of i-Automation, a strategic concept for driving innovations at
manufacturing sites targeted at meeting expanding worldwide demand for
labor savings and automation. This business generated significant growth
by providing optimal solutions to manufacturers in a range of sectors,
most notably production investments by Japanese and American automakers
and for investment demand in the semiconductor segment. This business
was also supported by brisk demand for machinery exports principally in
the European food sector, as well as for capital expenditure in Greater
China’s growing semiconductor and solar power industries.

The Company reaffirmed its full-year results forecasts for fiscal 2018.
Management forecasts net sales to rise 4.7%, to ¥900.0 billion, gross
profit to increase 6.9%, to ¥382.5 billion, operating income to climb
7.8%, to ¥93.0 billion, and net income attributable to shareholders to
advance 2.1%, to ¥64.5 billion. The Company plans to acquire treasury
stock for a second consecutive year, investing up to ¥20 billion to
purchase as many as 5 million shares in the year to July-end 2019. This
buy-back plan underscores OMRON’s commitment to improving both
shareholder returns and capital efficiency while investing extensively
in business growth.

Yoshihito Yamada, OMRON President and CEO, commented that, “In the first
quarter, our core Industrial Automation and Healthcare businesses were
the main catalysts for growth. We are beginning to see the growth cycle
accelerate—net sales growth and wider gross profit margins are enabling
us to accrue capital to reinvest in business areas that will drive our
growth in the future. OMRON will remain focused on meeting our full year
earnings forecasts and achieving mid-to-long term business growth by
executing the action plans that we set out at the beginning of the year,
while paying close attention to market developments, given growing
uncertainties surrounding trade issues.”

About OMRON CorporationOMRON Corporation is a global leader
in the field of automation based on its core technology of "Sensing &
Control + Think." OMRON's business fields cover a broad spectrum,
ranging from industrial automation and electronic components to
automotive electronic components, social infrastructure systems,
healthcare, and environmental solutions. Established in 1933, OMRON has
about 36,000 employees worldwide, working to provide products and
services in 117 countries and regions. For more information, visit
OMRON's website: http://www.omron.com/